FX.co ★ Luxembourg GDP Growth Slows to 0.6% in Q2

In the second quarter of 2025, Luxembourg's economy grew by 0.6% on a quarterly basis, marking a slight decrease from the upwardly revised growth of 0.7% in the first quarter. This expansion was largely attributed to increased household consumption, which rose by 0.2% following a decline of 0.5% previously, and government expenditure, which increased by 1.0%, though slightly less than the previous quarter's 1.3% rise. However, the overall economic growth was tempered by a significant decline in gross fixed capital formation, which fell by 3.0% compared to a previous increase of 3.0%. In terms of international trade, export levels remained static, showing no change from the prior growth of 5.8%, while a slight decrease in imports by 0.1% compared to the previous 5.8% helped to support the GDP marginally. On a yearly comparison, the GDP contracted by 0.2% in the second quarter, following a larger decline of 1.9% in the first quarter.